Report: State pension funding gap at $1.2 trillion


(AP) – A new report finds that state-run pension systems for public employees are underfunded by $1.2 trillion.

Moody’s Investors Services says the gap is expected to widen in the years ahead, partly because the funds’ annual investment returns are running well below expectations.

The report released Thursday compiled pension data for the end of the 2015 fiscal years in most states. It is among the first to tally the funding gap under new accounting rules intended to give a more accurate picture of the problem.

California, Illinois, New Jersey, Pennsylvania and Texas accounted for more than half the total pension gap across the country.

Get breaking news, weather and traffic on the go. Download the ABC27 News App and the ABC27 Weather App for your phone and tablet.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s